Nigeria gets debt relief
Nigeria and 75 other countries have been granted debt service relief by the World Bank and China, The Nation has learnt.
The debt service waiver was granted by G20 countries at the end of their meeting on Wednesday, a source who was privy to the discussion said. The debt service relief translates to Nigeria not being liable to service some of her debts for the rest of the year.
“We will benefit to the extent that the principal and interest repayments falling due which to our understanding is a debt service suspension (not forgiveness) until the end of 2020.” The source who asked that his identity be veiled because he was not authorized to comment, said the benefit to Nigeria
“will be the fiscal space created through debt rescheduling and interest payments which we are obligated to countries like China and also the World Bank.”
The source said at the end of the meeting in Saudi Arabia on Wednesday. “The G20 expressed support for a time-bound suspension of debt service payments for the poorest countries that request forbearance.”
“They agreed on a coordinated approach with a common term sheet providing the key features for this debt service suspension initiative, which is also agreed by the Paris Club”.
All bilateral official creditors, the source added, “were directed to participate in this initiative, consistent with their national laws and internal procedures.”